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Moderators: TalbotWoods, JaneClack

By donnajaneindigo
#471747 Hi all
I have got myself into a mess.

About 2 years ago I defaulted on credit cards, payday loans and catalogues.

I them buried my head in the sand. I am now being contacted by nervous debt collectors.

I am suffering from depression, uncontrolled diabetes and cyclical committing syndrome. I have a teenage daughter with congenital heart disease and severe anxiety. She is in college but unable to work due to her health.

I claim wftc at the moment.

Payplan have advised a DRO and Stepchange have advised token payments. I realise this is a mess of my own doing and want to put things right.

My surplus income is 6.75 a month.

I have a liability order for CT and am in rent arrears.

I have no assets.

So far I have let myself be persuaded to pay 20 a month to Bryan Carters for the catalogue debts due to him sending LBA. I also pay Lowells 7.00 for 2 debts totalling 800.

They want copies of my prescriptions!!

My total debts( about 50% made up of charges) are around 6000.

I am tired and stressed, my daughters heart Is getting worse and she will need surgery soon.

I have a non connected bank account. No DCA has my phone number.

Please help I don't want a DRO, I want to pay something but the minimum so that my illnesses and my daughters illnesses don't deteriorate. We can't live without food!!!!

Thank you I am a genuine can't pay even though I buried my head, it was through fear

Dee x
Last edited by TalbotWoods on Mon Nov 03, 2014 8:59 pm, edited 1 time in total. Reason: Reformatted for the ease of reading
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By JaneClack
#471756 Hello

As you know if you have contacted Payplan a DRO would cost you £90 for the application payable to the insolvency service - not Payplan and if your disposable income is no more than £50 per month and your debts are less than £15,000 - including the council tax etc then that would be the only sum payable and there would be a moratorium on your debts for a year. That means creditors cannot contact you or ask you to pay them anything at all. At the end of the year if there have been no change in circumstances then the debt is written off. Why do you not want to do a DRO?

It will sit on your credit file for 6 years from when it is approved as do any defaults, bankruptcy or an IVA. It is a form of insolvency but if you are not looking for more credit or and live in rented accommodation then it would seem a sensible way to rid yourself of debts.

Token payments are not a solution - they are purely a way of treading water until your circumstances change. Token payments do not clear debts and rather than struggling under an unsustainable burden of debt it would seem to be a suitable solution.

I do see that token payments are your progression forward of choice and it is your decision but unless you feel there will be an increase in income to repay then getting it out of the way would seem the simplest and easiest way to go. The creditors are not going to go short if you do this and you are in this situation through circumstance not because you have thrown money away.

The only caveat I have at present is the rent arrears as they too would go into a debt relief order so although you could not be chased for these, it could be used as a reason for eviction.

Obviously I cannot say any more without looking at the information so I shall send you a private message so you can discuss this further.